Exam 1: The Statement of Financial Position Balance Sheetand What It Tells Us

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Suppose a company purchases a van for £21,000 with the intention of using it for three years and selling it for £6,000 at the end of the three years.The company uses straight line depreciation.Which of the following statements is correct?

(Multiple Choice)

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Question 21

Management accounting is primarily concerned with producing financial statements for shareholders and creditors.

(True/False)

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Question 22

If liabilities increase £3,000 during a given period and owner's equity decreases £1,000 during the same period,the assets must have:

(Multiple Choice)

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Question 23

Which of the following statements is correct?

(Multiple Choice)

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Question 24

A company with a high current ratio is said to have:

(Multiple Choice)

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Question 25

The statement of financial position of Rosie Ltd.includes the following entries: inventory £25,000,trade receivables £12,000,cash £11,000 and current liabilities £25,000 (made up of trade payables £16,000,short-term borrowing £800 and £8,200 current tax payable).Calculate the liquidity ratio.

(Multiple Choice)

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Question 26

Which of the following statements is correct?

(Multiple Choice)

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Question 27

An example of a long-term asset is:

(Multiple Choice)

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Question 28

Which of the following statements is true?

(Multiple Choice)

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Question 29

A company is said to be 'high geared' when:

(Multiple Choice)

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Question 30

Showing 21 - 30 of 30

Suppose a company purchases a van for £21,000 with the intention of using it for three years and selling it for £6,000 at the end of the three years.The company uses straight line depreciation.Which of the following statements is correct?

Management accounting is primarily concerned with producing financial statements for shareholders and creditors.

If liabilities increase £3,000 during a given period and owner's equity decreases £1,000 during the same period,the assets must have:

Which of the following statements is correct?

A company with a high current ratio is said to have:

The statement of financial position of Rosie Ltd.includes the following entries: inventory £25,000,trade receivables £12,000,cash £11,000 and current liabilities £25,000 (made up of trade payables £16,000,short-term borrowing £800 and £8,200 current tax payable).Calculate the liquidity ratio.

Which of the following statements is correct?

An example of a long-term asset is:

Which of the following statements is true?

A company is said to be 'high geared' when:

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Cash Flow Statements: Understanding and Preparation

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Management of Working Capital

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Incomplete Records

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